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HAR
HAPS
Harmony acquires a stake in Western Areas Limited - Financial effects on Harmony
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
Trading Symbols
JSE Limited HAR
New York Stock Exchange, Inc. HMY
NASDAQ HMY
London Stock Exchange plc HRM
Euronext Paris HG
Euronext Brussels HMY
Berlin Stock Exchange HAM1
HARMONY ACQUIRES A STAKE IN WESTERN AREAS LIMITED - FINANCIAL EFFECTS ON HARMONY
Further to the announcement released earlier today, the financial effects on
Harmony are disclosed below.
The pro forma financial effects of the acquisition have been prepared for
illustrative purposes only and are set out below:
Column 1 Column 2
Note Before the After the Change
acquisition acquisition (%)
(cents) (cents)
Earnings per share 1 (77) (97) (31%)
Headline earnings per share 1,2 (162) (176) (10%)
Net asset value per share 3 (5 853) (5 853) 0%
Net tangible asset value per 4 (5 278) (5 278) 0%
share
Number of shares in issue 394.16
(`million)
Weighted average number of 392.60
shares in issue (`million)
Notes:
Column 1 reflects the unaudited earnings and headline earnings per share for the
6 months ended 31 December 2005. Column 2 reflects the effective earnings and
headline earnings per share for the 6 months ended 31 December 2005 based on the
following principal assumptions:
* the acquisition was effective 1 July 2005;
* an equity stake of 29.2% was purchased in Western Areas; and
* the acquisition was funded using R985m in cash (earning an average
after tax interest rate of 3.6%) and R1 000m in interest bearing
debt at an average after tax interest rate of 6.4%.
The Western Areas loss for the 6 month period to December 2005 includes a once-
off R24m impairment of mining assets and investments attributable to Harmony.
Column 1 reflects the unaudited net asset value per share at 31 December 2005.
Column 2 reflects the effective net asset value per share on 31 December 2005
assuming the transaction was effected on 31 December 2005.
Column 1 reflects the unaudited net tangible asset value per share at 31
December 2005. Column 2 reflects the effective net tangible asset value per
share on 31 December 2005 assuming the transaction was effected on 31 December
2005. Assumes an attributable tangible asset value in Western Areas of R1 140m
to Harmony.
The net asset value attributable to Harmony"s holding in Western Areas as at 31
December 2005 was R1 985m. The net loss after taxation for the 6 months ended 31
December 2005 attributable Harmony"s holding in Western areas was R29m.
The financial effects have been prepared using accounting policies that comply
with International Financial Reporting Standards (IFRS). The accounting policies
are consistent with those applied in the previous financial year, except for the
adoption of the revised international accounting standards forthcoming from the
IAS improvements project and the adoption of IFRS 2, Share-based Payments.
Issued by Harmony Gold Mining Company Limited
Johannesburg
10 March 2006
For more details contact:
Bernard Swanepoel
Chief Executive
on +27(0)83 303 9922
or
Philip Kotze
Executive, Investor Relations
on +27(0)83 453 0544
Investor Relations Officer
Vusi Magadana
Office: +27 11 684 0149
Mobile: +27(0)72 157 5986
vusi.magadana@harmony.co.za
Debt underwriter
Rand Merchant Bank
Merchant Bank
Rand Merchant Bank Corporate Finance
Transactional sponsor
Rand Merchant Bank Corporate Finance
Sponsor
Merrill Lynch South Africa (Pty) Limited
The directors of Harmony accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the directors of
Harmony (who have taken all reasonable care to ensure that such is the case),
the information contained in this announcement is in accordance with the facts
and does not omit anything likely to affect the import of such information.
Date: 13/03/2006 08:09:03 AM Produced by the JSE SENS Department
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